FTSE 250 movers: Cairn rallies on upgrade; Inmarsat crashes after Eutelsat's U-turn
London's FTSE 250 was flat in afternoon trade on Tuesday at 20,781.97 as worries about a global trade war continued to play on investors' minds.
Cairn Energy was the standout gainer following an upgrade to 'buy' at Bank of America Merrill Lynch, which said it was a fundamental valuation call.
Entertainment One was on the front foot as JPMorgan said that Peppa Pig has become a global brand, reinforcing the appeal of its owners.
Merlin Entertainments' announcement that it would open as many as 50 Peppa theme parks underlines the durability of the cartoon pig’s appeal, JP Morgan said. The analysts retained their ‘overweight’ rating on Entertainment One shares and increased their target price to 546p from 423p.
Ibstock, which manufactures clay bricks and concrete products, was on the front foot after agreeing to sell a former quarry near Bristol for £9.3m in cash. The consideration is payable in full on completion, which is expected to be the end of August, and it is anticipated that the sale will generate a reported pre-tax profit on disposal of around £6m.
On the downside, Inmarsat crashed back down to earth with a bang as France's Eutelsat said it was not planning on making an offer for the company.
Shares in the satellite operator rocketed in the previous session after Eutelsat said it was evaluating a possible offer. However, the group - which had until the end of play on 23 July to either announce a firm intention to make an offer for Inmarsat or walk away - said earlier that it does not intend to make an offer.
Funnily enough, Kepler Cheuvreux had downgraded its stance on Eutelsat ahead of its announcement early on Tuesday, saying it was unconvinced of the merits of a tie-up between the two.
Dixons Carphone was also in the red as Credit Suisse assumed coverage of the stock at 'neutral'.
"There is rarely any rush to buy into retail restructuring stories and Dixons does not feel it is any exception: There are no further 'magic bullets' from competitor exits and a fully developed new UK strategy is presumably reliant on completion of the mobile network renegotiations, where there is no guarantee of a successful outcome."
FTSE 250 - Risers
Cairn Energy (CNE) 254.40p 6.80%
Ferrexpo (FXPO) 196.15p 4.70%
Hikma Pharmaceuticals (HIK) 1,459.00p 3.04%
Renishaw (RSW) 5,330.00p 2.90%
Entertainment One Limited (ETO) 372.20p 2.82%
Sanne Group (SNN) 699.00p 2.79%
Sirius Minerals (SXX) 33.16p 2.73%
Ibstock (IBST) 294.60p 2.72%
Bakkavor Group (BAKK) 183.00p 2.23%
Stagecoach Group (SGC) 136.00p 2.18%
FTSE 250 - Fallers
Inmarsat (ISAT) 572.00p -9.52%
Provident Financial (PFG) 594.20p -4.19%
FDM Group (Holdings) (FDM) 989.00p -3.42%
Rank Group (RNK) 181.40p -3.10%
Clarkson (CKN) 2,570.00p -2.84%
Euromoney Institutional Investor (ERM) 1,350.00p -2.60%
McCarthy & Stone (MCS) 101.00p -2.42%
Coats Group (COA) 75.50p -2.33%
Dixons Carphone (DC.) 195.55p -2.18%
Superdry (SDRY) 1,117.00p -2.10%